(Thai) Annual Report 2005 - United Overseas Bank

Management Discussion and Analysis 2005
United Overseas Bank (Thai) Public Company Limited (UOB Thai) is the culmination of the successful integration of Bank
of Asia and UOB Radanasin Bank on 28 November 2005, following the receipt of all regulatory approvals.
Statutory Financial Results
The Statutory financial statements reported in this Annual Report is the financial position of the January to November
2005 (11 months) performance of Bank of Asia, and net profit of December 2005 (1 month) of UOBT (which is sum of
Bank of Asia and UOB Radanasin). UOB Thai’s Statutory net profit for 2005 was THB 954 million, 25.4% higher than
the net profit of THB 761 million achieved in 2004.
Summarized Statutory Financial Results
For the year ended 31 December 2005 and 2004
Profit & Loss statements 2005 2004
audited audited
THB million
% change
Net income from interest and dividends 4,660 4,131 12.8
Non-interest income 2,782 2,870 (3.1)
Total income 7,442 7,001 6.3
Operating expenses 4,730 4,892 (3.3)
Operating profit 2,712 2,109 28.6
Merger-related expenses 384 - N.M.
Operating profit before provision 2,328 2,109 10.4
Loss on impairment of securities 1,741 128 1,260.2
Provisions for doubtful debts (387) 1,198 (132.3)
Net profit before tax 974 783 24.4
Income tax 20 22 (9.1)
Net profit after tax 954 761 25.4
Key Balance Sheet Items 31 Dec. 05 31 Dec. 04
audited
audited
THB million
% change
Total assets 196,692 163,862 20.0
Total loans 159,601 118,517 34.7
NPLs 16,781 18,962 (11.5)
Total deposits 152,576 138,034 10.5
The Bank’s total income registered a 6.3% increase to THB 7,442 million in 2005. Higher interest and dividend
income and lower interest expenses were the key factors for the improvement. Non-interest income declined 3.1% to
THB 2,782 million on the back of lower treasury profits. Arising from the integration of the two banks, the Bank
booked integration-related expenses of THB 384 million in 2005. However, operating expenses declined 3.3%
to THB 4,730 million as the Bank began to realize some operational synergies from the integration.
Consequently, operating profit rose by 10.4% to THB 2,328 million. Excluding the one-time integration related expenses,
the operating profit would have been THB 2,712 million, an increase of 28.6% over 2004.
12 United Overseas Bank (Thai) Public Company Limited